Log scale

Real Growth in US Housing Prices (Log Scale) 1890-2015

I am revising a graph from 2010 focusing on national housing prices back to 1890. Data is originally from Robert Shiller's book Irrational Exuberance and is updated on his website.   Exponential data like this often needs a log scale to show the changes across different decades, however, I am created a companion graph to show the same data on a linear scale. Look for it next week!

BTW, if you pledge on Patreon you will get a sneak peek about what I am working on.

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(Log Scale) Long-term real growth in US GDP 1871-2009

Log scale version of yesterday's Real Growth of US GDP graph. If you look at the Long-term Stock Growth graph, the slope of the trendline looks similar to the US GDP trendline. However, when you calculate their annualized growth rate from 1871-2009 you get:

  • Annualized Real Stocks Price Growth    1.95%
  • Annualized Real GDP Growth                3.47%

Real Word Examples of Exponential Growth
4.50

Six real word examples of exponential growth in a Powerpoint slide show (3.7 MB) that includes 11 graphs of economic and financial data (linear and log scale). Data is from MeasuringWorth.orgYahoo Finance, and Irrational Exuberance. Links to the data sets are included in the file. Images can be printed (B&W or color) for handouts.

  • Real US GDP 1790-2012 (Linear & Log Graphs)
  • Real US Stock Prices 1871-2012 (Linear & Log Graphs)
  • General Electric Stock Price 1962-2013  (Linear & Log Graphs)
  • US Population 1790-2012 (Linear & Log Graphs)
  • Inflation Index 1774-2012 (Linear & Log Graphs) 
  • US GDP & Population 1790-2012 (Log Graph)

These graphs illustrate historical data series with constant growth rates and data series with changing growth rates over time. In addition, there is a example of adding/subtracting growth rates in log graph using US GDP, US Population & US GDP per person. 

*** A few of people have had difficulty downloading in Firefox, if the download link does not work, try to copying the link into another browser. ***

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US stock growth during "Roaring 20s" similar growth in 1990s

Another stock graph similar to Exponential Growth Rate of US Stocks since 1871 except this one is plotted on a semi-log scale to help illustrate the price movement of S&P Composite Index. For example, the percent change in the index's value during the 1990s "Internet Stock Bubble" (a little over  250%) was similar to the price change during the 10-years preceding the 1929 Stock Market Crash.

You can find the data at IrrationalExuberance.com


Real Word Examples of Exponential Growth
4.50

Six real word examples of exponential growth in a Powerpoint slide show (3.7 MB) that includes 11 graphs of economic and financial data (linear and log scale). Data is from MeasuringWorth.orgYahoo Finance, and Irrational Exuberance. Links to the data sets are included in the file. Images can be printed (B&W or color) for handouts.

  • Real US GDP 1790-2012 (Linear & Log Graphs)
  • Real US Stock Prices 1871-2012 (Linear & Log Graphs)
  • General Electric Stock Price 1962-2013  (Linear & Log Graphs)
  • US Population 1790-2012 (Linear & Log Graphs)
  • Inflation Index 1774-2012 (Linear & Log Graphs) 
  • US GDP & Population 1790-2012 (Log Graph)

These graphs illustrate historical data series with constant growth rates and data series with changing growth rates over time. In addition, there is a example of adding/subtracting growth rates in log graph using US GDP, US Population & US GDP per person. 

*** A few of people have had difficulty downloading in Firefox, if the download link does not work, try to copying the link into another browser. ***

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Graphing historical data: DJIA

Playing around Yahoo finance with a friend of mine (Hey Fleur!), we started looking at historical stock data. Yahoo has daily values for DJIA going back to 1929 so the obvious thing to do is look at the crash of 1929. Yahoo plotted the DJIA on a logarithmic scale because of the large change in values over the last 80 years:

Dow Jones Industrial Average since 1929 (Log scale)

We switched to the normal view:

Dow Jones Industrial Average since 1929

You can see why the log scale is needed. Without it the 1929 crash and the Great Depression are invisible. But what about 1987? Wasn't that the biggest drop in the history of the stock market?

October 28, 1929 “ Dow Jones plummets 38.33 to 260.64  (13% drop)

October 19, 1987 "Black Monday" Dow Jones down 508.32 to 1738.74  (22% drop)

In both of the above graphs we are plotting cumulative wealth (the current value is based on the previous day's value). What we need is the percent change day-by-day, which is why daily history at Yahoo is important:

Dow Jones Industrial Average since 1929 (Daily Percent Change)
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